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Small Business Retirement Planning

Help yourself and your employees by implementing a retirement strategy that is a real benefit - one that you control, offers investment flexibility, provides tax-deferred savings, attracts and retains employee talent, and is easy to manage over time.

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Why Retirement Planning

Securing a comfortable lifestyle for retirement years is a shared goal among business owners, managers and employees alike. Having a competitive retirement program is a key ingredient toward attracting and retaining good employees.
Your BUZGate™ educational sponsor, ShareBuilder 401(k), introduces a range of Retirement Plan options ideally suited to small business needs:

If You Are	Plan Benefit Profiles	Where to Begin
Owner-Only Business or Independent Contractor Plan4One	An Individual 401(k) which allows self-employed individuals to shelter more income than allowed through conventional retirement plans. Designed for: A business that does not employ any full-time employees Individuals making contributions up to $44,000 or 100% of compensation (whichever is less) Contributing "as you wish" (regularly, lump sum, etc.)	Request a Free Assessment
Businesses with 2 to 10 Employees Plan4Ten	An easy-to-operate "Safe Harbor" plan satisfying nondiscrimination rules for elective deferrals and employer contributions. Suited for businesses that: Have 2 to 10 total employees Have owners or highly-compensated employees looking to maximize their contributions Are willing to make regular contributions to their employee’s accounts	Request a Free Assessment
Businesses with more than 1 Employee Plan4Most	A Traditional 401(k) designed for larger businesses requiring more plan design flexibility or businesses with 10 or fewer employees that do not plan to make employee contributions. Supports businesses that: Have more than 1 full-time employee Offers flexibility as to "if" or "how" company contributions are made	Request a Free Assessment

Retirement Trends

As more of our population approaches retirement age, statistical factors such as low personal savings rates, social security uncertainly, and unpredictability in pension fund performance, are leading more and more small businesses to look at the value offered by 401(k) plans:

Individuals have direct control in managing their 401(k)
Employers have control regarding "if" and "how" they contribute, and
The value of a 401(k) can be reviewed at any point in time with changes made to investment strategies as desired.

>> Request Free Assessment >> View Online Tour >> Online Planning Tools

Employer Benefits

As an employer, your business can benefit by implementing a 401(k) plan as follows:

Attract younger, talented employees
A 401(k) is funded primarily by the employee
Better cash flow planning where employee contributions may be matched on a monthly or yearly basis
Employees, not the employer, retain control over the amount of retirement savings
Employees can directly access their retirement account at all times versus having to go through the employer
Payroll deductions can make plan funding easy and convenient
Employees, not the employer, choose how aggressive or conservative they want their retirement investment choices to be

>> Request Free Assessment >> View Online Tour >> Online Planning Tools

Employee Benefits

Your employees benefit by a 401(k) plan as follows:

Employees can contribute part of their salary before taxes and defer paying tax on the contributions and earnings until they withdraw funds at retirement
Employees decide how to invest their contributions
Employees retain control over their retirement benefit position
Employees benefit from 401(k) compounding growth features and so the sooner they invest, the more potential the retirement value becomes over time

>> Request Free Assessment >> View Online Tour >> Online Planning Tools

Why Plan Now

Because 401(k) contributions are tax-deferred, small monthly contributions can equate to substantial savings in the future. Therefore, the sooner the plan begins, the higher the potential return down the road. For example, you and your employees would incur a measurable loss in retirement plan value when a 401(k) plan is put off for just one more year:

Age	Annual Salary	401(k) Contribution	Projected Return	Value at 65
30	$50,000	5% = $2,500/year	7%	$375,195
31	$50,000	5% = $2,500/year	7%	$347,493
Net difference by delaying investing by one year: $ (27,702) Lost Savings NOTE: The Projected Return of 7% is a hypothetical example only and not a guaranteed rate of return. Actual rates are likely to vary over the life of the retirement investment, and will depend on investment selections and changing marketing conditions.

Pre-Tax Savings

In the above retirement planning example, there is not only an opportunity to yield over $25,000 more in retirement funds by starting a 401(k) plan one year earlier, but each annual $2,500 401(k) contribution is non-taxable representing an annual savings of over $750 per year in taxes paid at an average tax rate of 30%.

>> Request Free Assessment >> View Online Tour >> Online Planning Tools

Plan Strategies

Employers and employees have a choice in selecting a 401(k) retirement plan investment strategy:

Do-it-yourself allows employees to choose which funds to invest in
Blended Strategy where employees choose a level of risk, such as aggressive, moderate or conservative, and then funds are invested accordingly for them

>> Request Free Assessment

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